Vacant Bendigo site draws rough sleepers as Virginia Hill redevelopment stalls

A fenced-off block on Bendigo's northern edge known as Virginia Hill has become a makeshift camp for at least one rough sleeper and others passing through, even as the Victorian government holds to plans for new homes there.

The site once held a public housing estate built on old mine land in the 1980s. Partial demolition took place in 2023 after years of problems with fires and squatters. Since then the 2.8-hectare parcel has stayed empty behind fencing, with concrete rubble, trolleys and broken glass left in place. The delay has drawn people looking for a quiet spot away from other campers, including a man who has stayed there for roughly a month.

Local concerns over housing mix

Residents in the Eaglehawk area have pushed back on the scale of social housing proposed for the block. Some argue the suburb needs smaller units suited to older locals so that larger family homes elsewhere can become available. The current design calls for more than 80 of the homes to be social housing out of a total of 129 units that will also include affordable and private dwellings.

Homes Victoria has stated the project forms part of the Big Housing Build and remains on track for construction to begin late this year once planning approval is secured. The agency has already flagged the need for soil remediation work because of contaminants identified on the former mine site, though it assesses the risk to people as low. The Environment Protection Authority has reviewed the background levels of arsenic typical of gold-mining districts in the region and supports the remediation approach.

Next steps for the site

Further consultation with the community is scheduled for later this year. Until building starts, the block will stay closed to the public while the agency completes the required environmental work. The situation highlights how redevelopment timelines can leave cleared sites exposed in a tight regional rental market.

Bendigo's experience with this stalled project echoes patterns seen in other regional centres facing similar delays on large-scale social housing replacements, where vacant lots can attract temporary occupation before remediation and approvals are finalised.